Question: On December 3 1 , 2 0 2 5 , when the market interest rate is 1 6 % , Derrick Corporation issues $ 1

On December31,2025, when the market interest rate is 16%, Derrick Corporation issues $ 180,000 of 12%,8-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance.

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